New Taxes have Devastating Economic Impact on Architects

The legislature is still planning to raise B&O taxes on AIA/WA members. There are 37 hours left in the 2010 Legislative Session. Lawmakers must be told about the impact the proposed tax increases will have on your firms.

Contact your legislator today and tell them to oppose new taxes on architects.

Unemployment Rates Soar for Architects
Architects have been hit hard by the current recession. Engineering News Record reports unemployment rates for design and construction were up to 25% in January. Washington State has lost over 4,400 design jobs since 2008, according to the US Bureau of Labor Statistics.

Revenues - Lowest Since 2006
Quarterly architecture and engineering (A&E) firm revenue has fallen by $434 million, and has not been this low since 2006. And, revenues are continuing to fall.

In the Architecture Billings Index any number under 50 means declining revenues. The latest number is 42.5 and falling. National data shows “...architecture firms have lost almost 51,000 positions.”

New Taxes on Firms that are Barely Surviving?
The state is facing difficult decisions but architecture firms have made harder decisions – to let many people go. Recently an AIA/WA member’s firm, one with originally more than 100 employees and 2 offices, closed its doors. They stated that projects simply ran out.

The state should take steps similar to what private sector businesses have done to keep their budgets balanced in these difficult economic times.

This proposed B&O tax increase will not come out of profits. There are no profits right now for Washington architecture firms. This tax will be paid by more people being laid off, by salaries being cut and by benefits being reduced.

Contact your legislator today and tell them to oppose these new taxes on architects.

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